GLP, a private equity-backed logistics operator and investor, plans to raise as much as US$2.5 billion for a new fund, betting Chinese consumer spending will underpin demand for modern warehouses.
The Singapore-based asset manager raised US$1.75 billion for GLP China Logistic Fund III at the first close last week, said Teresa Zhuge, executive vice chairman of its China operation. It is the firm’s third so-called "opportunistic fund", focusing on logistics in the country, targeting an internal rate of return at about 15%, Zhuge said.
In China, GLP develops and manages modern warehouses across 68 cities, and leases to customers like express courier SF Holding and logistics services provider Best. The new fund will keep focusing on such assets, especially those in first-tier cities and economic hubs, in the next two to three years, Zhuge said in an interview.
